Darragh Walshe, Giselle Radulovic & Charis RicafuenteNew Zealand/ Australia

FALL TOURISM UPDATE

MARKET CONDITIONS

GDP growth has slowed to 2.75% for 2019

GDP 2.75%10 year low and may fall further

AUD$.068 = USD$1

Personal tax cuts and low interest rates stimulating discretionary spending

ECONOMY

MARKET CONDITIONS - AUSTRALIA

• Drop in capacity between 2018/ 2019

• Cancelations by Jetstar reduced availability in first 6 months

AIRLIFT

Domestic tourism increase in 2019

Seniors (55+ yrs) emerging

TRENDS

MARKET CONDITIONS - AUSTRALIA

GDP Generally steady, with low interest rates to spur growth

GDP STEADYLowest point in a decade and expected to hover around this level

AUD$.063 = USD$1

Record economic surplus, yet business confidence low due to slow growth

ECONOMY

MARKET CONDITIONS – NEW ZEALAND

• 2018 - a unique situation of almost 50,000 new air-seats flooding the market

• 2019 and beyond - a return to normal capacity

• Focus on increased loads and yield

AIRLIFT

• Subject to global market impacts

• Outbound tourism continues to grow

• Trend towards shorter but more frequent holidays

TRENDS

MARKET CONDITIONS NEW ZEALAND

TRAVEL TRENDS

HTO working with trade partners to focus on the higher yielding, experiential customer

Legacy of 2018 increases in airlift to Hawaiʻi and airline competition created a change in perception and customer mix

TRAVEL TRENDS

Source: My Travel Research “Powering the next phase of growth for Hawaiʻi in the Australian market” Jan 2019

General Travel Trends:

• Hawai’i has strong emotional equity and brand momentum compared to competitor destinations – Fiji, Bali, Thailand

• More than a tropical getaway - associated with awe inspiring nature, adventure and a family and friends destination

• Path to purchase is not linear. Consumers research across multiple digital channels. Still a preference to book via travel agent or OTA

TRAVEL TRENDS

Source: US Dept of Commerce

Top 5 USA destinations - Australian Inbound Travel 2018

-1.1%

Source: Australian Bureau of Statistics

-1.5%

8.9%

7.9%16.3%2.7%

5.6%

1.5%

0%

8.8%

TRAVEL TRENDS - AUSTRALIA

Visitor arrivals

28%Hawaiʻi

15%

New Zealand inbound travel to the U.S 2018

Source: Statistics NZ

0%47.9%7.6%8.4%2.1%6.6%

8.6%1.3%

3.6%

15%

TRAVEL TRENDS – NEW ZEALAND

TARGET AUDIENCE

Average age: 36 years old

20% OTHER FAMILY OR FAMILY & FRIENDS

24% FAMILY WITH

CHILDREN

29% AS A COUPLE

TARGET AUDIENCE

Auckland, Wellington, Waikato/Bay of Plenty, Christchurch

NEW ZEALANDEastern Seaboard: Sydney, Brisbane and Melbourne and major regional centres

AUSTRALIA

TARGET AUDIENCE

*Explorer Quotient market segmentation system

CULTURAL EXPLORERS*• Learning and discovery• Local immersion• Educated• Families and couples

AUTHENTIC EXPERIENCERS*• Tangible engagement• History and culture• Educated• Mature traveller

HIGH-VALUE TRAVELERS

TARGET AUDIENCE

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CONSUMER STRATEGY

Six Hawaiian Islands, Infinite Experiences

CONSUMER STRATEGY

General focus:

• Experience led strategy

• Focus on multi-island dispersal

• Highlighting Hawaiʻi’s outstanding nature

• Branded content across HTO channels

• Multi channel integrated campaigns

CONSUMER STRATEGY

Public Relations:

• Media famils aligned to brand themes

• Key story angles across mainstream print and digital channels

• National broadcast opportunities including television and radio

CONSUMER STRATEGY

120,000 fans

29,000 followers

170,000 subscribers

2 blogs per month

CONSUMER STRATEGY

Inspiration – Trip Discovery HTO channels

CONSUMER STRATEGY

Trade: Call-to-actionPublic Relations

CONSUMER STRATEGY

Targeted approach:

• Increased investment in social media – paid social

• Measuring trends on our digital channels - Social Media and EDM

• Market specific research informs content curation

CONSUMER STRATEGY

Campaign Examples:

• Partner with non-tourism brands to leverage channels and activity e.g. Billabong

• Themes around adventure, nature and wellness that appeal to our high value traveller segment

• Multi-island campaign focusing on experiences

• Responsible tourism

CONSUMER STRATEGY

Lei Day activation

• Appeal to cultural explorers and authentic experiencers

• May Day activity highlighting Hawaiian Culture and the spirit of Aloha

• Key brand campaign providing consumers an immersive experience of Hawaiʻi in Oceania

CONSUMER STRATEGY

TRADE STRATEGY

• Consumers research across multiple channels yet prefer to book Hawai’i via travel agent or OTA

• Trade play a role in inspiring, informing & educating the traveler

• Motivate ‘preferers’ to choose Hawai’i over another destination

• Travel agents are influential in promoting neighbor island visitation

TRADE STRATEGY

Engagement tactics:

• Trade education:

o Online and face-to-face

o Support travel brands that service high value travelers – Travel agent conferences

• Trade Shows

o Month of Lei

o Aloha Down Under Roadshow

• Famils – Travel agents and product managers

TRADE STRATEGY

Engagement tactics:

• Cooperative campaigns:

o Influence branding via external channels

o Support our key trade partners and top producers – OTAs and retail travel agencies

o Multi-island content/packages

o Focus on increasing length of stay and spend in market

TRADE STRATEGY

MCI

Deployment:

• Dedicated MCI resources building on existing in market relationships

• Advertising and promotion via online channels, hosted events, FAMs and branded collateral

• Hawai’i partner collaboration and product expertise

MCI

Lead Development Strategy:• Grow network of PCO relationships• Meet Hawaiʻi Down Under Sales Mission • Conference and tradeshows• HTO events

Key Vertical Segments:• 3rd party meeting planner• Automotive• Entertainment/Media• Healthcare/medical• Sports• Franchise/Direct Selling

MCI

RESPONSIBLE TOURISM

Distribution of Rooted, Kuleana, and Travel Tips video:

• Amplified across paid and organic social media• Included in trade and consumer e-communications• Destination updates and Aloha Down Under

Marketing content and PR

• Editorial and advertorial consumer content• Content and imagery in HTO produced content

RESPONSIBLE TOURISM

Sea Cleaners Initiative:

• Partnership with non-profit environmental company, Sea Cleaners

• A true collaboration – HTA, HTO, HTJ, Industry partners, media

• Respecting & protecting culture & environment

• An exchange between Pacific Rim countries and Hawaiʻi around the issue we have with plastic rubbish in the Pacific Ocean

• Expand the Pacific Rim connection to Hawaiʻi

RESPONSIBLE TOURISM

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CommunityNatural ResourcesHawaiian CultureBrand Marketing